Traditional Capital Raising - Brazil

The Traditional Capital Raising market market in Brazil is expected to reach US$5.18bn in 2024.
Venture Capital is set to lead the market with a projected volume of US$4.84bn in 2024.
When compared globally, most Capital Raised is anticipated to be generated the United States (US$159.0bn in 2024).
Brazil's traditional capital raising market is increasingly turning to local investors for funding due to economic uncertainties affecting foreign investment.

Definition:

The Traditional Capital Raising market relates to venture investment in startups and emerging companies that are not yet generating positive or significant revenue but have high growth potential. The capital is mostly raised from venture financial institutions, and minorly from banks.

Structure:

The market consists of two segments:
- The Venture Capital market refers to private equity funding that is offered to startups and emerging companies.
- The Venture Debt market refers to the combination between equity and debt financing, which is used to finance the early stage and growth stage capital-backed companies.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Additional information:

Although the Traditional Capital Raising market is highly competitive in investment opportunities due to the rapidly high growth rate of startups and emerging companies, it has become more popular for these businesses who cannot get traditional loans from banks, to develop and grow their businesses or projects.
Key players in this market are companies such as Sequoia Capital and Hercules Capital.

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Venture Capital
Venture Debt

Traditional bank loans
Digital capital raising

The Traditional Capital Raising market in Brazil has been experiencing significant growth in recent years, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Brazil have shifted towards traditional capital raising methods due to their perceived stability and reliability.

Investors are attracted to the security provided by traditional capital raising, such as initial public offerings (IPOs) and bond issuances. This preference is driven by a desire for long-term investments with steady returns, especially in a market that has experienced volatility in recent years. Trends in the market also contribute to the development of the Traditional Capital Raising market in Brazil.

Companies in Brazil are increasingly looking to raise capital through IPOs to fund their expansion plans and take advantage of favorable market conditions. The growing number of successful IPOs in recent years has further fueled interest in traditional capital raising among both companies and investors. Local special circumstances in Brazil, such as a large and diverse economy, also contribute to the growth of the Traditional Capital Raising market.

Brazil has a robust and well-regulated financial market, which instills confidence in investors and encourages companies to consider traditional capital raising options. Additionally, the Brazilian government has implemented policies to promote capital market development and attract foreign investors, further supporting the growth of the market. Underlying macroeconomic factors play a crucial role in the development of the Traditional Capital Raising market in Brazil.

The country's stable economic growth, low interest rates, and inflation control measures create a favorable environment for capital raising activities. These factors attract both domestic and international investors, who are eager to participate in Brazil's growing economy and take advantage of the potential returns offered by traditional capital raising instruments. In conclusion, the Traditional Capital Raising market in Brazil is developing due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Investors and companies in Brazil are increasingly turning to traditional capital raising methods, such as IPOs and bond issuances, due to their perceived stability and reliability. The favorable market conditions, well-regulated financial market, and supportive government policies further contribute to the growth of the market. With Brazil's stable economic growth and attractive investment opportunities, the Traditional Capital Raising market is expected to continue its upward trajectory in the coming years.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses. In 2020, the leading venture capital backed company worldwide was the Manbang Group, which based in Nanjing, China.